Running a business when you can't predict monthly income can stress out any business owner. Some months, new clients seem to drop from the sky and other months, there's an actual sound of crickets chirping. A feast or famine lifestyle isn't healthy for anyone but there is a way to not only survive, but thrive. A little organization and a some steady work habits can help keep your budget on track.

Here's a freelance survival guide to thriving during the feast or famine cycle of income.

Always Be Marketing

In business sales lingo, the term "ABC" stands for "always be closing".  Solo freelancers are their own sales team and should always be selling their business in a variety of ways. During the famine part of the freelance income cycle, desperation can come across as needy and turn away otherwise great clients. Building trust in your business can be done through establishing connections all the time, even when you're busy. 

• Take advantage of networking opportunities in your area. Check Meetup.com or other networking groups just to get out and meet other people.
• Use digital marketing such as a website, social media or email newsletters to stay in communication with your network.
• Talk about your business when you're with friends. You never know when someone knows someone who might need your help. Keep those business cards on you at all times!
• Let your network know when you'll have upcoming capacity for more work. Don't wait until you're starving - send out notice when a current client contract in its last few months. 

Track Your Expenses

Did you buy a subscription for a tool or resource that isn't needed anymore? Often, small businesses invest in software they pay for every month but no longer use. If you have to buy software for a client, charge them for it unless you feel it can benefit your business. Look closely at spending trends, both personally and in your business, to see if you can consolidate or cut costs. Once you have an idea of what expenses need to be covered, you'll have a better idea of how to budget for them. 

Set Aside Taxes

Freelancers pay more taxes that someone with a 9-to-5 job due to self-employment tax. Getting hit with a tax bill will definitely make a freelancer question if they should go back to traditional employment. The best advice your CPA will give you is to regularly pull taxes out of each client payment you receive and save it to pay your taxes quarterly. If you get behind and then choose to pay the previous year's taxes on a monthly basis, you've added yet another expense and will need to do more work to stay afloat. Get organized, plan ahead and pay those taxes regularly.

Pay Attention to Your Client Base

Low-paying clients shouldn't take as much of your time. If they are, then it may be time to raise your rates. Determine what your time is worth so you're not slogging along day and night just to pay your bills. Long term clients or monthly recurring service contracts are another way to predict dependable income.  Communicate regularly with your clients so you get a good idea of how their business is going and if or how you can be more helpful. The goal is to have a client base that doesn't raise any red flags that they won't be paying their invoices on time. 

See also: How to Set Prices and Invoice Like a Boss

Diversify

If your business experiences slow downs regularly, it may be a sign that you need to diversify your sources of income. A bridge job is one such way to make the move from traditional work to freelancing by taking on part time work outside of your business. Another consideration is working with an agency as part of a pool of freelancers that they turn to whenever they need extra help. Diversifying your income offers a steady paycheck or at the very least a nice cash surprise when you least expect it.

Variable income can be exhausting to the independent worker who has bills to pay. Don't wait until your business is flailing before doing something about it. Get organized. Build a budget. Work with great clients who value your hard work and respect your time. 

If your clients aren't paying their invoices on time, let us know if we can help. We charge no fees unless we collect.